Mercedes Homes files Chapter 11

It lists Fifth Third Bank, owed $7.1 million, as its largest creditor.

“As is the case throughout the nation and in the entire residential construction industry, the company has suffered from the prolonged weakness in the economies of the markets where it does business,” Mercedes says in a statement. “In addition, the company has also suffered liquidity strains due, in part, to the takeover of one of its lenders in its lending syndicate by the FDIC.”